1. Consider the following data for the “home” country of Afar (whose currency is the Afarian pound, £); the “foreign” currency is the U.S. dollar ($):

2000    2006

E £20/$                 £22/$

Phome 100                    140

Pforeign         100                     110

1. Calculate the real exchange rate for 2000 and 2006.
2. Did the Afarian pound appreciate or depreciate in nominal terms? in real terms? Explain your answer intuitively.
3. What do you think has happened to Afar’s trade balance (E- Z) between 2000 and 2006?
4. Does (relative) purchasing power parity hold for Afar between 2000 and 2006? Why or why not?
5. What would the nominal exchange rate e have to be in 2006, in order for purchasing power parity to hold (i.e., to keep the real exchange rate constant at its 2000 level)?

What are reasons on why the trade War is still happening and cannot get solved? What are potential outcomes?

You are expected to provide your answers in academic writing.

Explain, using Solow's (1956) model, (i) why the seeds of long-run output growth lie in investment, which constitutes a part of the aggregate demand (AD), and (ii) how AD grows when the long-run output grows, so that the balance in the goods market is maintained?

Dana's monthly demand curve for the gym is: p=10-q where p is the price and q is the quantity. The market price for a single visit is 3 RMB. Monthly membership (you can enter the gym for free if you have the membership) cost 22 RMB. Should Dana pay for the monthly membership? Prove.

True or False: A 10% reduction in price that leads to a 10% increase in the amount purchased indicates a price elasticity of more than 1 (in absolute value).

True

False

True or False: A 10% reduction in price that leads to a 2% increase in total expenditures (or total revenue) indicates a price elasticity of more than 1 (in absolute value).

True

False

If the percentage change in price is less than the resultant percentage change in quantity demanded, demand is   .

Housing supply and demand is an example of the effects supply and demand can have on price elasticity. The most recent housing boom from 2000-2005 was not only a boom in housing prices, but also in-house construction.

Based on your readings, there are a number of factors that determine housing prices. Some are based on economic theories and some are based on more intangible factors. Describe the key economic factors which effect housing prices and how they are determined (Home Guru).

please make the solutions clear and detail

EverKleen Pool Services provides weekly swimming pool maintenance in Atlanta. Dozens of firms
provide this service. The service is standardized, each company cleans the pool and maintains the proper
levels of chemicals in the water. The service is typically sold as a four-month summer contracts. The
market price for the four-month service is $125. EverKleen Pool Services has a fixed cost of $3,500.
The manager of EverKleen has estimated the following cost function:
SMC = 125-0.42Q+0.0021Q2
Where SMC is measured in dollars and Q is the number of pools serviced each summer.
a. At what output level does AVC reach its minimum value? What is the value of AVC at its
minimum point?
b. Should the firm continue to operate or shut down? Explain why?
c. What is the optimal output level? Make necessary calculations and clearly highlight the
optimum level
d. How much profit/loss can the manager of the firm expect to earn?
e. The fixed costs rise to $4,000. What is the effect of such an increase? Explain.

1. Tax Policy

1. What would happen to inflation, GDP, unemployment and economic growth in the short run and the long run if we cut income taxes by 100 billion and the marginal propensity to consume (MPC) is equal to .75? Make sure to include the appropriate equation and an analysis of the impacts of C, I, G, NX, AD, AS, P, Q, inflation and economic growth.
2. How would this tax cut impact the National Budget and the National Debt? What are the pros and cons of running a deficit? Would you support such a tax cut and for whom should we impose the tax cut?
3. What would happen to these variables and the AD/AS graph if we had a corporate tax cut of 100 billion instead?
4. What are 4 policies that the Supply-side Model supports?

1. A widely popular brand of car tyres have consistently given more mileage to the consumers over time which have led to an increase in their prices. However, the inflation rate computed using CPI jumps up considerably because of this. What kind of drawback does the CPI have in this case?

a. New Product Bias

b. Outlet Bias

c. Substitution Bias

d. Quality Bias

2. Which one of the following is a major cost of inflation?

a. Shoeleather Costs.

b. Tax distortions.

c. Menu Costs.

d. All of the other options.

3. Unexpected inflation leads to:

a. Transfer of wealth from creditors to debtors.

b. Transfer of wealth from creditors to creditors.

c. None of the other options are true.

d. Transfer of wealth from debtors to creditors.

4. Which of the following sequences explains the Wealth Effect the best?

a. Price level rises, consumers feel wealthier, consumption spending falls, output demand falls.

b. Price level rises, consumers feel poorer, consumption spending rises, output demanded rises.

c. Price level falls, consumers feel poorer, consumption spending falls, output demanded falls.

d. Price level rises, consumers feel poorer, consumption spending falls, output demanded falls.

5. The Quantity Theory of Money is given by the equation:

a. MV = PY

b. MY=VP

c. MP=VY

d. M/V = P/Y

6. The fundamental equation of the national income accounting identity is given by:

a. Y = C + I + G + X – M

b. Y = C +I + NX

c. Y = C + I + G + M – X

d. Y = C + G + X – M

7. Which of the following can cause a shift of the AD curve?

a. Change in consumption

b. All of them.

c. Change in output.

d. Change in Price

Please Answer These: Book is Human Resource Management | 16th Edition by Sean Valentine/Patricia Meglich/Robert L. Mathis/John H. Jackson

1. _____ Companies rarely see benefits as an effective retention tool because employees generally have very little understanding of the benefits provided by their employers. a) True or b) False

2._____ Legally required benefits make up more than half of the total cost of benefits. a) True or b) False

3. _____ The benefits offered to employees, can be positively seen as? a) A non-financial intangible program. b) A federally mandated instrument. c) A means of competitive advantage. d) A financial tangible program.

4.____The following is a legally-required benefit? a) Health Insurance. b) Unemployment Insurance. c) Pension Plans. d) Tuition Reimbursement

5._____Firms are required to pay an unemployment percentage that is based on: a) Type of industry. b) Number of employees. c) Payroll cost. d) Experience rates

6._____Sandra is an HR assistant. Sandra participates in her company’s pension plan. After having worked for eight years, Sandra has been vested by her company. This indicates that: a) When Sandra retires, she will receive the amounts contributed by the company and herself. b) Sandra can now transfer her pension balances to a new employer’s plan if she moves to a new company. c) Sandra will receive the funds her firm contributed to the pension plan only if she is a member of the firm while retiring. d) None of the above

7._____ The following is a voluntary benefit that employers provide in addition to legally required benefits? a) Medicaid insurance. b) Workers’ compensation. c) Education assistance. d) Social security

8.______Maggie who has a pre-existing medical condition quit her job at ABC Company and went to work for XYZ Company. According to the following, Maggie can switch her health insurance plan from her former employer to her new employer? a) Consolidated Omnibus Budget Reconciliation Act – COBRA. b) Family Medical Leave Act - FMLA . c) Health Insurance Portability and Accountability Act – HIPAA. d) Patient Protection and Affordable Care Act – PPACA

9.______The following typically consists of approaches that monitor and reduce medical costs through restrictions and market system alternatives. a) Utilization review. b) Managed care. c) HMO. d) PPO

10.____ Benefits approach adopted as part of total rewards depends on many factors include all of the following EXCEPT a) Employee competition. b) Size of the organization. c) Workforce competition. d) Organizational life cycle

11._____Only employees who have worked at least 12 months and 1,250 hours in the previous year are eligible for leave under the FMLA. a) True or b) False

12. _____ Violations of the Employee Retirement Income Security Act (ERISA) can lead to disqualification of a pension plan. a) True or b) False

Table: Production Possibilities for Tractors and Crude Oil

Reference: Ref 8-5 Table: The Production Possibilities for Tractors and Crude Oil

(Table: The Production Possibilities for Tractors and Crude Oil) Use Table: The Production Possibilities for Tractors and Crude Oil. The United States has a comparative advantage in _____, and Mexico has a comparative advantage in _____.

Select one:

a. both goods; neither good

b. tractors; crude oil

c. neither good; both goods

d. crude oil; tractors